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Do you have out-of-pocket medical
or dependent care expenses that are not payable
by any other source? Flexible Spending Accounts
through a Section 125 Cafeteria Plan permit you
to pay for qualified expenses with pre-tax dollars.
American Fidelity Assurance Company
offers two types of Flexible Spending Accounts
to choose from:
- Health FSA - reimburses qualified medical
expenses
- Dependent Care Assistance Program - reimburses
qualified dependent care expenses
Features
Each employee chooses the amount
to be deducted, subject to certain limitations,
from his or her salary for one or both accounts.
Each pay period the deductions are sent to AFA
and placed into the employees' account. As qualified
medical or dependent care expenses are incurred,
the employee submits a voucher form with the required
documentation to AFA for reimbursement.
Benefits
Pre-taxing dependent daycare expenses
through Section 125 are realized throughout the
year rather than filing for the deduction on your
tax return. However, you do need to check with
your tax advisor to determine the greater benefit
for your tax situation.
Qualified out-of-pocket medical
expenses that are not paid or reimbursed by insurance
policies can be reimbursed through a Health FSA,
including certain over-the-counter medications.
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